Final answer:
A Universal Life insurance policy allows for adjustments in cash values, premiums, and coverage amount. It does not guarantee interest rates and is not backed by equities like a bond portfolio. It is also different from a Variable Whole Life plan.
Step-by-step explanation:
Universal Life insurance is a versatile life insurance policy that provides policyholders with flexibility in adjusting cash values, premiums, and coverage amounts according to changing financial needs. Unlike some other policies, Universal Life insurance lacks guaranteed interest rates, subjecting the interest earned on the policy's cash value to fluctuations. Not backed by equities such as a bond portfolio,
it distinguishes itself from certain investment-linked insurance plans. Importantly, Universal Life insurance differs from Variable Whole Life plans, as it doesn't offer investment options in securities like stocks and bonds. This unique feature makes it an attractive choice for individuals seeking adaptability in managing their life insurance coverage and financial strategies over time.